For the first time, losses on poker machines in South Australia have exceeded $1 billion in the 2024–25 financial year. This significant milestone has raised concerns among experts and advocates, who warn that gambling is becoming increasingly problematic, particularly as cost of living pressures push some individuals to gamble more. In this fiscal period, revenues from gaming machines rose by nearly $53 million compared to the previous year, with more than $453 million going to the state government and venues collectively earning nearly $555 million.
The impact of these losses has been especially pronounced in regional areas. For instance, the Mount Gambier and Grant councils reported losses of $24 million, while Whyalla saw losses of $20.7 million. The Alliance for Gambling Reform has described the situation as “spiralling out of control.” Martin Thomas, from the Alliance, highlighted that Australians lose approximately $32 billion annually to gambling. He noted that financial stress often leads individuals to gamble as a form of escapism, stating, “Research shows that when people are doing it tough, sometimes it impairs their decision making.”
Social Costs of Gambling Outweigh Wagering
Monash University associate professor Charles Livingstone pointed out that while online betting is increasing, accounting for around 30 percent of total wagering in Australia, poker machines remain the dominant form of gambling. He emphasized that the social costs associated with gambling are significantly higher than the amount wagered, citing a recent study that estimated the social costs of gambling in Victoria at around $14 billion annually.
In South Australia’s south-east alone, losses attributed to poker machines reached $42 million in the last financial year. Thomas noted that regional communities often rely on pubs and clubs, which serve as social hubs. He expressed concern about the normalization of gambling culture among young people involved in sports, stating that while it may start as harmless fun, it can escalate into severe addiction and financial hardship.
Calls for Action and Reform
The Greens have called on the South Australian government to commit to phasing out poker machines by 2030, labeling them a “scourge on our state.” Greens MLC Robert Simms pointed out the extensive social harm caused by gambling since the machines’ introduction over three decades ago. He highlighted connections between problem gambling, family violence, and crime, urging the government to take action before more lives are adversely affected.
Simms proposed that the government should establish a transition fund to assist pubs and clubs in finding alternative revenue sources, similar to initiatives taken in other states. He argued that it is unethical for the state to rely on gambling revenue given its devastating impact on communities.
While acknowledging the significant losses, Anna Moeller, chief executive of the Australian Hotels Association SA, defended the role of gaming machines in maintaining the viability of many hotels. She highlighted that without such revenue, many establishments might struggle to offer affordable food and services during the current cost of living crisis.
Moeller also noted that regulating poker machines is more feasible than overseeing online gambling platforms, which can operate in less transparent environments.
In response to the ongoing concerns, Andrea Michaels, Minister for Consumer and Business Affairs, reaffirmed the government’s commitment to reducing the number of poker machines in South Australia. She mentioned that the state has instituted some of the strictest regulations regarding gambling, including mandated facial recognition and automated risk monitoring.
As the debate around poker machines continues, the implications of these gambling losses extend beyond financial figures, affecting families and communities throughout South Australia.
